With a follow-through lower on the back of its previous week losses occurring the past week, threats are now seen towards the 107.30 level, its 2010 low. We expect that level to provide a strong support and turn the cross back up if tested. However, on a failure of that level, the 106.75 level, its Sept'2001 low will be aimed at ahead of its psycho level at 105.00. Its weekly studies are bullish and pointing higher. Conversely, to reverse its current downside tone, a break and hold above its May 29'10 high at 114.78 must be established to create scope for further strength towards the 115.46 level, its May 18'10 high and then the 119.63 level, its Feb 25'10 high. Overall, with a sharp decline occurring the past week, risk of further lower prices continues to shape up.
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